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Decision-Making in Complementary Products Supply Chain: Game Theory and Sensitivity Analysis
Wuhan Univ Technol, Sch Phys & Mech, Wuhan 430070, Peoples R China.
KTH, School of Industrial Engineering and Management (ITM), Materials Science and Engineering, Process. KTH, School of Industrial Engineering and Management (ITM), Production engineering. Wuhan Univ Sci & Technol, Sch Management, Wuhan 430080, Peoples R China; KTH Royal Inst Technol, Dept Prod Engn, S-11428 Stockholm, Sweden.ORCID iD: 0000-0001-7585-4674
KTH, School of Industrial Engineering and Management (ITM), Centres, XPRES, Excellence in production research. KTH, School of Industrial Engineering and Management (ITM), Production engineering.ORCID iD: 0000-0001-9694-0483
Wuhan Univ Sci & Technol, Sch Management, Wuhan 430080, Peoples R China.
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2025 (English)In: Systems, E-ISSN 2079-8954, Vol. 13, no 5, article id 360Article in journal (Refereed) Published
Abstract [en]

This paper explores how to reduce supply-demand conflicts in supply chains by utilizing complementary products' unique relationships and shared objectives. Also, it considers the service level concerns of consumers. Primarily employing game theory, this paper analyzes the pricing strategies of complementary products within a three-tier dual-channel supply chain, the relationship between pricing and service levels, and the performance optimization across channels. Numerical results demonstrate that elevated values of alpha 1 indicate heightened consumer sensitivity to manufacturer price fluctuations. To sustain sales volume, manufacturers are compelled to reduce prices, consequently leading to a decline in equilibrium prices within the market. A rise in beta 1 induces an across-the-board increase in all price tiers, albeit with differential magnitudes. The intensification of channel competition alpha 2 exerts downward pressure on all pricing components. The retailer's price demonstrates maximal responsiveness to beta 2 fluctuations, as retailers directly absorb cost variances.

Place, publisher, year, edition, pages
MDPI AG , 2025. Vol. 13, no 5, article id 360
Keywords [en]
game theory, sensitivity analysis, complementary product, supply and demand conflict
National Category
Business Administration
Identifiers
URN: urn:nbn:se:kth:diva-367898DOI: 10.3390/systems13050360ISI: 001496898400001Scopus ID: 2-s2.0-105006624797OAI: oai:DiVA.org:kth-367898DiVA, id: diva2:1987026
Note

QC 20250804

Available from: 2025-08-04 Created: 2025-08-04 Last updated: 2026-04-15Bibliographically approved

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Wang, YongWang, Xi VincentWang, Lihui

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